facebook
twitter
search
search

Discover Bank to reimburse $200 million

Sept. 24, 2012 at 3:46 PM

WASHINGTON, Sept. 24 (UPI) -- U.S. regulators said Monday Discover bank had agreed to refund 3.5 million consumers $200 million and pay a fine to settle charges of deceptive marketing.

The Federal Deposit Insurance Corp. and the Consumer Financial Protection Bureau announced the settlement jointly. It includes a $14 million civil penalty and a mandate to reimburse customers.

The flawed marketing had to do with Discover's behavior while selling "add-on products" to its credit service, including payment protection, credit score tracking, identity theft protection and wallet loss protection, the agencies said.

Regulators said sales of the add-on products "often used language implying that the products were additional free 'benefits,' rather than products for which a fee would be applied to their accounts."

Consumers were deceived about the charges, about whether or not they had purchased the add-on services and "enrolled without their consent," the agencies' statement said.

Like Us on Facebook for more stories from UPI.com  
Latest Headlines
Top Stories
Gas prices could go up, AAA says
Oil struggles to correct after Monday's drop
BMW's all-electric truck hits Munich streets
Thales, IAI demo new NATO STANAG 7085 data link on UAV
MBDA France orders MMP missile warheads